DUBAI: Stock markets in the Gulf ended mixed on Tuesday as investors clung to hopes that Moscow’s deployment of troops to two breakaway regions in eastern Ukraine will be as far Russia goes.
The spectre of war on Europe’s eastern flank had flared on Monday, sending oil prices to a seven-year high, after Russian President Vladimir Putin ordered troops into the Donetsk and Luhansk regions of Ukraine.
The United States and its European allies started to announce harsh new sanctions in response, with German Chancellor Olaf Scholz warning that the Nord Stream 2 gas pipeline would now be denied certification to begin operating.
Dubai’s main share index edged 0.1% lower, with Emirates Integrated Telecommunications losing 0.5%.
Separately, Dubai Electricity & Water Authority (DEWA) expects to launch its initial public offering next month, with a listing on the Dubai Financial Market likely to be in April, Reuters reported on Tuesday, citing sources.
The company plans to offer at least 5% of its shares to investors, said the sources, while one of them said the offering could go up to 10%.
In Abu Dhabi, the index reversed early losses to close 0.6% higher, with the country’s largest lender, First Abu Dhabi Bank, rising 0.5%.
Egypt’s largest investment bank, EFG Hermes, appointed Goldman Sachs to advise on FAB’s offer to acquire a majority stake, it said on Monday.
FAB this month made a non-binding offer to buy at least 51% of EFG Hermes for 19 Egyptian pounds ($1.21) per share, which valued the investment bank at nearly $1.2 billion.
The Qatari index added 0.2%, supported by a 0.6% rise in Qatar National Bank.
Outside the Gulf, Egypt’s blue-chip index slid 1.7%, as most of the stocks on the index were in negative territory including top lender Commercial International Bank.
Investors have taken the current geopolitical tensions in Europe into account and as the region is one of the country’s largest trading partners, any economic shock would be felt on both sides, said Daniel Takieddine, CEO MENA BDSwiss.
“At the same time, the rise in oil prices was not able to support the market.”
The Saudi Arabian market was closed for a public holiday on Tuesday.
ABU DHABI up 0.6% to 9,103
DUBAI eased 0.1% to 3,309
QATAR gained 0.2% to 12,691
EGYPT down 1.7% to 11,302
BAHRAIN dropped 0.2% to 1,028
OMAN lost 0.8% to 3,697
KUWAIT down 0.6% to 4,058.
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